Development and Implementation

Development and Implementation

Now that the alternatives and risks have been assessed, and optimal solution selected, we can now describe the functionalities and job duties of the new departments at Riordan Headquarters.

The Office of Compensation and Job Design

Riordan's Chief Financial Officer, Dale Edgel will be responsible for running the Office of Compensation and Job Design. The unit is responsible for the design and administration of the job evaluation plans at Riordan Manufacturing. A customized Aiken Plan will be used in place to evaluate Support Staff positions, and a customized Hay Plan is used to assess Administrative Professional Officer (APO) positions.

On-going accountabilities of the department include the professional evaluation of positions, and the provision of consulting services to departments and staff regarding job and organizational design, and position management. The department also conducts salary surveys, and provides the organization with industry response to related external public and private sector surveys.

Riordan can address many internal issues through implementing the nine steps of the Aiken plan, which include: complexity, education, experience, initiative, consequence of errors, contacts, character and scope of supervision, physical demands, and working conditions. Not all nine steps will be utilized in managing compensation and job design strategies.

The Aiken Plan is used both as a guideline and tool for measuring the varying compensation needs of the employees at Riordan manufacturing.

Ð'* Character and scope of supervision considers the degree and nature of employees' position supervisory responsibilities. A position that, supervises and instructs, teaches, or trains is ranked in both line supervision and instruction. The higher of the two rankings is used to award points for this factor.

Ð'* Complexity/Judgment (Decision Making), this factor deals with the complexity of the tasks performed by each employee, judgment/decision-making necessary and problem solving required by the position.

Ð'* Experience considers the time required to develop the necessary skills and expertise to perform the job. The experience required to perform the job may be obtained, fully or partially, from on-the-job exposure or from related experience gained from previous jobs.

Ð'* Education refers to the training necessary to prepare an individual to fill a position satisfactorily. It reflects the minimum level of formalized knowledge required to fulfill the requirements of the position.

Ð'* Consequence of errors are can be used as a guideline for performance evaluations, but assesses the likelihood, and the probable effect, of errors on the job and considers the extent of losses to Riordan which result from uninformed decisions or judgments.

The Hay Plan is used as a development and measuring tool for position job designs at Riordan Manufacturing.